KL, S'pore rubber prices firmer
KL, S'pore rubber prices firmer
KUALA LUMPUR (Reuter): Rubber prices were firmer at midday yesterday on shortcovering and in line with a higher Indonesian market, dealers said.
"The market is quiet and business is very slow at the start of the year," a dealer said. "We are awaiting more enquiries from Europe to come in slowly after year-end holidays.
Prices followed a higher Indonesian market. Some Asian enquiries were seen for SMR grades and sheet rubber.
"We expect more demand from foreign consumers as they have to build up their stocks in view of raw material shortages," a trader said.
Dealers said the supply situation remains tight. Rains in many rubber growing areas have affected tapping.
"Producers are still quoting quite high prices," another dealer said. SMR 20 was indicated at around 415 cents and January drum latex at 330 to 335 cents.
Trading was cautious following a switch to new spot month quotations.
At noon, MRELB quoted new trading month Feb RSS 1 buyer at 397.50 cents (US$$1.56), up 1.50 cents from Friday. The market was closed on Monday for New Year holidays. Feb SMR 20 rose four cents to 405.50 cents.
Meanwhile, Singapore rubber futures were steadier by the close on shortcovering interest and position adjustments, traders said yesterday.
But dealings were thin at the start of the year and activity was mainly focused on forward RSS1 contracts.
"Some traders are still on a holiday mood," one broker said. "Several Thai firms remained shut today."
Prices were sightly steadier in line with a similar trend in the cash market. The steadier prices also reflected position adjustments at the start of the month.
Traders said recent reports of floods in Malaysia and rains in the main Thai growing areas sidelined many origin sellers and sparked renewed concerns among some buyers.
By 0945 GMT, Feb RSS3 was untraded but April, May and June were each dealt at US$1.62 a kg. Common May/June was last settled at $1.59 .
The market was closed on Monday for New Year holiday.